Börsiteade

Pealkiri

Unaudited consolidated interim accounts for first quarter of 2012

Teade

The consolidated non-audited sales revenue of the Tallinna Kaubamaja Group for
the first quarter of 2012 was 106.0 million euros, having grown by 10.3%
compared to the results of the first quarter of 2011, when the sales revenue
was 96.1 million euros. The sales revenue increased in all the segments of the
Group, while the vehicle trade segment and the footwear segment indicated the
greatest growth among the retail business segments. The profit of the reporting
period was 3.2 million euros, which has doubled compared to the previous
period. The profit in the first quarter of 2011 was 1.6 million euros. 

The strong sales results were positively reflected in the Group’s profit earned
in the first quarter. On the one hand, this was supported by the growth of
domestic consumption in Estonia; on the other hand, the efforts of the Group in
the previous years to improve the assortment of goods and keep fixed costs
under control. In the first quarter, the greatest changes were made in the
business segment of department stores – almost one third of the sales floor
area in the Tallinn department store was partly or completely closed for
renovation during almost two months. The women’s department of Tallinna
Kaubamaja with its renewed brand portfolio and sales floor solution offering an
integral and convenient purchasing environment was opened on 8 March. An
intriguing and playful children’s department was opened on a sales space double
its former size at the end of March. The modernised environment has an
important role to play in increasing the competitiveness of the business
segment of department stores. 

The sales revenue of the department store business segment in the first three
months of 2012 was 19.0 million euros, thus having increased by 12.6% compared
to the same period of the previous year. The sales revenues were positively
influenced by a successful end-of-the-season final campaign of winter goods,
which was organised in January. The loss earned by the department stores in the
first quarter of 2012 was 0.3 million euros, which is an improved result
compared to the year-on-year 0.4 million euros. At the same time it should be
kept in mind that the renovation works were carried out in the women’s
department in Tallinna Kaubamaja from the middle of January until March,
temporarily influencing the sales activities on 3,500 square meters. As a
result the renovation works, the women’s department expanded by 1,000 square
meters and was opened for the customers in its entirely renovated form on 8
March. Due to reconstruction works, 12.6% of the total sales floor area or
2,100 square meters was completely closed for two months; instead of the former
sports and digital products department, the largest children’s department in
Estonia was opened on that area on 22 March. In the first quarter of 2012, the
sales revenue of OÜ TKM Beauty Eesti, which operates the I.L.U. beauty stores,
was 0.8 million euros, having grown by 51.8% compared to the same period of the
previous year. The net loss earned by the I.L.U. chain in the first quarter was
0.2 million euros, which is 0.03 million euros lower than in the same period of
the previous year. Compared to the first quarter of last year, in April 2011
the I.L.U. chain also opened a fifth store in the Ülemiste Centre in Tallinn. 

The consolidated sales revenue of the business segment of supermarkets in the
1st quarter of 2012 and the sales revenue in Estonia were 77.3 million euros,
having increased by 7.1% compared to the period of a year earlier. The
consolidated pre-tax profit and net profit of the supermarket segment was 1.9
million euros in the first quarter of 2012, showing a growth of 0.8 million
euros or 77.7% compared to the same period of 2011. The pre-tax profit and net
profit earned in Estonia was 2.4 million euros in the first quarter of 2012, up
0.8 million euros or 49.6% compared to the same period of the previous year.
The increase in the sales revenue of the Selver stores in the 1st quarter has
been promoted by successful sales campaigns and the fact that sales during the
holiday season of the 1st quarter grew more than on average. In addition, the
impact of the leap year was significant, as it added an extra selling day to
the period under observation. Compared to the low reference base of the
previous year, the sales revenue of industrial and convenience goods showed an
improvement in the 1st quarter. The impact that the rise in prices had on the
growth of the sales revenue of food products has started to reduce and the
decrease of sales volumes has slowed down. Selver stores continue to focus on
adapting the selection of goods to the changes in demand and on ensuring the
availability of goods – the results are also becoming apparent in the improving
sales results. Compared to the same period of the previous year, the increase
in the sales revenue has been greatly affected by the tougher competition in
the retail business market as well as the higher reference base on the account
of the Soldino Selver, which was closed last year. The growth of profit in
Estonia is primarily caused by the increased sales numbers and continued work
with the assortment of goods and sales profitability. Thanks to that, the
enterprise's gross profit margin has increased by 0.3 percentage points. In
Selver stores, the focus is still on operational cost-efficiency and labour
force efficiency. The creation of the bakers’ concept completed on 27 March and
taking over the bakery stalls in the stores has temporarily increased the
operating costs of 2012. Selver stores in Latvia have been closed down and no
sales revenue of goods was earned in the 1st quarter of 2012 in Latvia.
Similarly to last year, the sales revenue of the Latvian enterprise in the 1st
quarter was 0.004 million euros. The pre-tax loss and net loss earned in Latvia
was 0.6 million euros in the first quarter, decreasing by 0.9% compared to the
first quarter of 2011. Economic activities in Latvia have been suspended. 

The external sales revenue of the real estate business segment in the first
quarter of 2012 increased by 6.1% compared to the same period of the previous
year and totalled 0.7 million euros. The profit of the first quarter was 1.8
million euros. The profit increased by 8.3% compared to the first quarter of
2011, mainly due to the increased sales income. 

The sales revenue of the vehicle segment in the 1st quarter of 2012 without
inter-segment transactions was 6.1 million euros, thus exceeding the revenue of
the same period of the previous year by 59.9%. The profit of the first three
months doubled (0.4 million euros) compared to the first quarter of the
previous year. The growth of profit was supported by the maintenance of
cost-efficiency at good sales results. 

The sales revenue of the footwear segment in the 1st quarter of 2012 was 2.9
million euros, indicating a growth of 13.9% compared to the same period of
2011. The considerable increase in sales was caused by the low reference base,
favourable weather conditions (the sales of the 2010/2011 winter season
remained in November-December of 2010, while in the 2011/2012 season, the
majority of winter goods were sold in January and February), and the general
boost in consumption, especially in the clothing and footwear sector. The loss
earned in the first quarter was 0.5 million euros. The loss had decreased by
19.7% compared to the loss of the first quarter of 2011, which was 0.6 million
euros. The main cause for the loss was the discounts at the end of the winter
season, common in fashion trade. 



CONSOLIDATED STATEMENT OF FINANCIAL POSITION

In thousands of euros

                                     31.03.2012     31.12.2011
--------------------------------------------------------------
ASSETS                                                        
--------------------------------------------------------------
Current assets                                                
Cash and bank                            12,881         11,948
Trade receivables                         7,623          9,976
Other short-term receivables                355          9,372
Prepaid taxes and other prepayments       1,269            959
Inventories                              47,578         41,973
Total current assets                     69,706         74,228
--------------------------------------------------------------
Non-current assets                                            
Prepayments                                 982            985
Investments in associates                 1,589          1,550
Other long-term receivables                  56             56
Investment property                       3,566          3,566
Property, plant and equipment           179,817        172,272
Intangible assets                         9,700          9,809
Total non-current assets                195,710        188,238
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TOTAL ASSETS                            265,416        262,466
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LIABILITIES AND EQUITY                                        
--------------------------------------------------------------
Current liabilities                                           
Borrowings                                9,600         11,261
Trade payables                           48,978         46,419
Tax liabilities                           3,627          5,038
Other current liabilities                 4,207          4,489
Provisions                                  115            135
Total current liabilities                66,527         67,342
--------------------------------------------------------------
Non-current liabilities                                       
Borrowings                               55,617         55,591
Provisions and prepayments                  619             73
--------------------------------------------------------------
Total non-current liabilities            56,236         55,664
TOTAL LIABILITIES                       122,763        123,006
--------------------------------------------------------------
Equity                                                        
Share capital                            24 438         24,438
Statutory reserve capital                 2 603          2,603
Revaluation reserve                      51 917         52,197
Retained earnings                        63 837         60,333
Currency translation differences           -142           -111
TOTAL EQUITY                            142,653        139,460
--------------------------------------------------------------
TOTAL LIABILITIES AND EQUITY                  265,416  262,466
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

In thousands of euros

                                                   3 months 2012  3 months 2011
-------------------------------------------------------------------------------
                                                                               
Revenue                                                  106,034         96,099
Other operating income                                       148             83
                                                                               
Materials, consumables used and services                 -79,893        -72,518
Other operating expenses                                 -11,506        -11,143
Staff costs                                               -8,562         -8,120
Depreciation and amortisation                             -2,538         -2,432
Other expenses                                              -140           -103
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Operating profit                                           3,543          1,866
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Finance income                                                55             76
Finance costs                                               -409           -406
Finance income on shares of associates                        39             55
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Profit before tax                                          3,228          1,591
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Income tax                                                    -4              0
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NET PROFIT FOR THE FINANCIAL YEAR                          3,224          1,591
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Other comprehensive income:                                                    
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Currency translation differences                             -31             71
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Other comprehensive income for the financial year            -31             71
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TOTAL COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR          3,193          1,662
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         Raul Puusepp
         Chairman of the Board
         Phone +372 731 5000